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    Marketable Securities; Efficient Inventory Management

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    1. Which of the following is not a situation which might lead a firm to hold marketable securities? {see first attachment for options}

    2. Which of the following might be attributed to efficient inventory management? {see second attachment for options}

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    Marketable Securities:
    <br>First let us understand what marketable securities means. Marketable securities are very liquid securities that can be converted into cash quickly at a reasonable price. Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has little affect on their price. E.g. bonds, commercial paper, stocks, etc.
    <br>Back to the question.
    <br>The firm has purchased a fixed asset, which will require a large write-off of depreciable expense.
    <br>* This situation does not require holding marketable ...

    Solution Summary

    The expert examines marketable securities, efficient inventory management.